Help me choose a receiver!

[Strommy]

Hello everyone,

To skip all the introductory BS, here's the condensed version:
I want to hook up my Xbox 360 and soon to be PS3 to my HDTV in 720p with 5.1 UNCOMPRESSED digital audio. I just purchased Klipsch Quintet II's. I am still undecided on subwoofer and receiver. I have come here for help on choosing a receiver. I like the HarmonKardon AVR146 because of its price and quality.

Here is my question regarding the AVR146:
If I hook my PS3 to my receiver via optical cable, will the sound be uncompressed or is that only if I get a receiver that processes HDMI?

I originally started this post with multiple questions but I have forgot them lol. I'll post them later I'm sure. I'm very open to suggestions for other receivers you think match my specifications. I'm a value buyer, not a top of line buyer.

Thanks in advance!